(News Bulletin 247) – The Paris Stock Exchange closed sharply lower, undermined by fears of an escalation of tensions in the Middle East. The CAC 40 lost 1.32% to 7,477.78 points this Thursday evening.

This is yet another session of sharp decline for the Paris Stock Exchange. The CAC 40 fell 1.32%, back below 7,500 points, to 7,477.78 points this Thursday evening.

Risk aversion was still very palpable as investors kept an eye on the Middle East where the situation worsened after the launch of 200 ballistic missiles by Iran against Israel on Tuesday.

On the eve of the publication of the official employment report in the United States for the month of September, investors were able to show caution.

“The various statistics published ahead of the September employment report indicate that the American labor market continues to slow down. The Fed (American Federal Reserve), which is now more focused on the objective of full employment than on that of price stability, may have to act more than what it communicated in its projections (two rate cuts of 25 basis points, or 0.25 percentage points, by the end of the year)”, says Bastien Drut, head of strategy and economic studies at CPRAM.

Stellantis falls again

The trend was also weighed down by declines in several heavyweights on the market.

The biggest drop in the CAC 40, Bouygues dropped 4.75% after abandoning targets for gross operating profit and turnover growth by 2026 for its telecoms subsidiary. “This abandonment reflects: a market that has slowed down, more price competition, an increase in energy costs, more fiber rental costs and more tower rental costs and despite additional savings,” comments Oddo BHF. Orange also fell following these announcements, losing 2.7%.

Stellantis returned 4.1% while Barclays lowered its opinion on the stock from “overweight” to “inline weight”.

Excluding the CAC 40, FDJ fell by 6.4%, penalized by fears of increased taxation on gambling.

Air France-KLM fell 0.1% after announcing a set of measures aimed at improving KLM’s profitability for a total of 450 million euros in the short term.

On other markets, the euro fell 0.3% against the dollar to 1.1018 dollars. Oil continues to rise, supported by geopolitical fears. The December contract on North Sea Brent advanced 4% to $76.85 per barrel while that of November on WTI listed in New York gained 4.15% to $73.01 per barrel.